It's always difficult to interpret coastal real estate in terms of what's going on nationally but it does have some impact due to people throughout the country being able to leverage their home's value in the purchase of a home on the Coast. Below, you'll see that there is some optimism for 2008 - although we're already seeing a positive direction here (we're up more than 50% compared to the first half of 2006)....
From NAR:
Lower levels of home-building activity throughout the nation will help existing home sales improve later this year and into 2008, according to NAR's most recent forecast. "Buyers now have an overwhelming advantage given the wide selection of homes available in many markets," said NAR Senior Economist Lawrence Yun. "But with profit margins coming under pressure, home builders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state." Existing-home sales are projected to total 6.11 million in 2007 and 6.37 million in 2008, down from last year's total of 6.48 million.
According to the report, prices also are expected to pick up in 2008 as inventory levels decrease. The median price of an existing single-family home is expected to drop 1.4 percent to $218,800 this year but increase 1.8 percent to $222,700 in 2008.
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